Pennant - AJ
Updated
Here on the Daily Chart I have AUD/JPY showing signs of a Pennant pattern!
Lower Highs into Higher Lows until a "Pinch Point" where price will need to break Bullish or Bearish. Pennants can break either way but the direction of the Market usually has an influence on where price will go after the break.
Price has tested the Falling Resistance and Rising Support twice already, so I am waiting to see what the Third test of either Trendline will bring! Price currently is on its way up so I suspect we will get a third test of the Falling Resistance shortly!
*Chart patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!
Lower Highs into Higher Lows until a "Pinch Point" where price will need to break Bullish or Bearish. Pennants can break either way but the direction of the Market usually has an influence on where price will go after the break.
Price has tested the Falling Resistance and Rising Support twice already, so I am waiting to see what the Third test of either Trendline will bring! Price currently is on its way up so I suspect we will get a third test of the Falling Resistance shortly!
*Chart patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!
Note
Currently this price rise towards the Falling Resistance is being terminated by my Fib'd Kill Zone! We could see price falling away without a touch if price is unable to get back to 96.474!Note
It would seem price is holding right on to the Falling Resistance Trendline.Scaling down to the 30 Min Chart, you can see what could be a possible Head and Shoulders forming!
I believe we could see the potential for price to play back down into pattern if its unable to use the Falling Resistance as Support to push higher!
Note
AUD/JPY gave us a Break and Close Bullish out of the Pennant Pattern! Now to watch for a possible retest of that break!!
Novi_FIbonacci
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